Signing a contractor's quote? Check these first

The arguments a complete quote prevents

“That wasn't included.” A line-by-line scope and a materials list — brand, model or grade — settle it before anyone picks up a tool.

“We'll finish next month.” A start date and an expected completion date, plus what happens if either slips, set expectations on both sides.

“Pay the rest now.” Payments tied to finished stages mean the money never runs far ahead of the work.

1. Who you are hiring

The quote should name the business, its address and phone number and, where the trade is licensed, its license number. The US Federal Trade Commission lists exactly these details as things a contract should contain. Check the license with the issuing body and ask for proof of insurance; a name and a mobile number alone make it hard to follow up if something goes wrong.

2. Scope and materials

Every part of the job should be listed, including preparation, removal of old materials, waste disposal and cleaning up. Materials should be identified precisely enough to check: a make and model for fixtures, a grade or product line for timber, tiles or paint. “Allowances” — a set budget for items you'll choose later — should state the amount and what happens if you spend more or less.

3. Price, deposit and payment stages

Confirm whether the total is fixed or estimated and whether tax is included. Then look at how much is due up front. Advice varies by country, and some places set legal limits. Citizens Advice in the UK recommends agreeing to no more than 25% as a deposit. Ontario's consumer ministry recommends keeping down payments to no more than 10%. In California, the down payment on a home improvement contract can't exceed $1,000 or 10% of the contract price, whichever is less, and later payments can't run ahead of the work done. The FTC advises never paying the whole price before the work starts.

After the deposit, look for stage payments tied to visible progress — “on completion of framing”, “after inspection” — and a final payment due only when the work is finished to your satisfaction.

4. Schedule, permits and site rules

Look for an estimated start date and completion date, and what counts as an acceptable delay (weather, supplier lead times, inspections). The quote should say who applies for any building permits and pays for them, and who books inspections. For work in an occupied home, agree working hours, access, parking and where materials will be stored.

5. Warranty, subcontractors and clean-up

What guarantee applies to the workmanship, and for how long? Are manufacturer warranties on materials passed on to you? If parts of the job go to subcontractors — electrics, plumbing, plastering — the quote should say so and make clear who pays them. Ontario's list of what a home renovation contract must include covers both sub-trades and clean-up, which is a good benchmark anywhere.

6. Changes, validity and cancellation

The quote should say that extra work is priced and agreed in writing — a signed change order — before it is done. Note the “valid until” date, and make sure there are no blank spaces left in the document when you sign it.

If you sign at home rather than at the contractor's premises, you may have a right to cancel within a short cooling-off period, and in the US the FTC says the contract should include a written statement of that three-business-day right. The length and conditions vary by country and province.

Comparing two or three quotes

Citizens Advice suggests getting written quotes from at least three traders. To compare them fairly, check that they price the same scope: one may include plastering and waste removal while another leaves them out. The FTC warns against automatically taking the lowest bid and suggests asking contractors to explain big price differences. A quote that is far cheaper than the others often has gaps rather than savings.

Sources

• FTC: How to avoid a home improvement scam
• Citizens Advice: Before you get work done on your home
• Ontario: Your rights when starting home renovations or repairs
• California Business and Professions Code § 7159.5